Which cosmetics and beauty products require to be affixed with an excise stamp?
Every package of Cosmetics and Beauty products of tariff heading No. 3303, 3304, 3305 and 3307 imported to or manufactured in Kenya are required to be affixed with an excise stamp.
How does one get excise stamps?
Excise stamps are issued by KRA to manufacturers with an Excise license and importers with import certificate.
Licensed manufacturers and importers lodge applications for excise stamps in EGMS system through the link https://egms.kra.go.ke/kraweb/home.seam
How do I get an excise license or an import certificate?
- Obtain requirements for excise licenses for manufacturers and import certificate for importers from the KRA website.
- Submit your Excise license application on iTax as follows - Log in to your iTax portal, click on the registration tab, select “other registration” and click on “Excise license”. Fill in the details and submit.
- For further clarifications, please send your queries via email to email@example.com
How do I get registered on EGMS?
Manufacturers with an excise license and importers with an import certificate are required to fill the user creation form for EGMS rights and send it to firstname.lastname@example.org.
You will be notified on email on creation of your EGMS account and your log in credentials. A request to a book training on use of the EGMS system will also be forwarded.
How do I register my product on EGMS?
Log in to the EGMS system, click on “SKU MANAGEMENT MODULE”, select “Submit new” or “modified SKU”; update product details and submit.
How do I provide my forecast for excise stamps?
Log in to the EGMS system, click on “ORDERING” module, select “MANAGE FORECAST” and input your monthly stamp usage projections for the next 6 months.
How do I purchase excise stamps?
Log in to the EGMS system and create an order. The order will be reviewed and approved at your Tax Service Office (TSO) to enable you to generate a payment slip through the EGMS system for payment.
Paper stamps are collected at the EGMS Help desk on ground floor at KRA Times Tower, while the digital excise stamps are added automatically to the EGMS equipment at the production line.
What is the cost of a stamp?
The cost of an excise stamp for Cosmetics and Beauty products is Kshs. 0.6.
When should I affix and activate the excise stamps?
For locally manufactured goods, excise stamps are to be affixed at the production facility immediately after packaging.
For imported goods, excise stamps are affixed at a place approved by the Commissioner within five days of clearance of the imported goods for home use
How do I activate/declare usage of stamps?
Log in to the EGMS system, click on the “Digital Activation System” (DAS); select “Declare Usage of The Stamps”; select the available Packaging unit (PU) and select the product on which the stamp has been affixed
Can I declare usage of stamps using my phone?
Yes, you can declare usage of the excise stamps through a mobile App solution called “Smart Digital Activation System” (SDAS) available for download on Google play and Apple store
Can I automate the affixing of stamps if I have an automated line?
Yes, through use of EGMS equipment. Submit your request to email@example.com. KRA will conduct a Technical Site Visit (TSV) and advise accordingly
Is there a penalty for not affixing excise stamps after the rollout?
Yes. Failure to affix excise stamps is an offence which attracts a fine not exceeding five million shillings or imprisonment for a term not exceeding three years or both.
When is the excise duty to be charged on the cosmetics and beauty products affixed with stamps?
For locally manufactured goods, Excise duty is charged when goods are removed from the excise licensed factory. For imported goods, Excise duty is due at the time of importation
What is the rate of excise duty on cosmetics and beauty products?
All cosmetics and beauty products of tariff heading No. 3303, 3304, 3305 and 3307 imported to or manufactured in Kenya attract excise duty at a rate of 15%.
When is the excise duty charged to be paid?
Excise duty charged by licensed manufacturers on excisable goods removed from the excise factory during a calendar month is payable by 20th day of the following month.
Excise duty charged on imported excisable goods is paid at the time of importation.